Another
popular crypto exchange has joined the ranks of digital asset companies that
were significantly impacted by the industry downturn of 2022. The Bitstamp’s
financial report released this week summarizing the past year revealed a
fivefold decrease in revenues, a twofold decline in turnover, and a net loss of
over €7 million.
Bitstamp
Limited, registered in the UK, published full accounts summarizing the results
for 2022. They display substantial declines compared to the record-breaking
year of 2021, reflecting how the digital asset market’s condition changed over
these two years.
In 2021,
when a single Bitcoin (BTC) was valued at nearly $70,000, Bitstamp’s revenue
reached €109 million, with a profit of €37 million. However, in 2022, when
BTC’s price dropped to as low as $15,000 at its worst, its revenues shrank to
€29 million. Simultaneously, the net profit turned into a loss of €7 million.
Other
significant financial indicators of the cryptocurrency exchange also
depreciated. The total volume fell from €117 million to just under €55 million.
At the same time, the company incurred higher administrative costs than in
2021, amounting to €57 million.
Scan of Bitstamp’s report seen by Finance Magnates. Source: Gov.uk
As the
company admits, such significant declines in performance were caused by
“unfavorable market conditions and the reduction in trading volumes.”
The latter was due to transferring part of the business to three subsidiary
companies: Bitstamp USA, Bitstamp Global, and Bitstamp Europe. The report also
mentioned the negative impact of the war in Ukraine on conducting business in
Europe.
“The
company’s total assets decreased to EUR 358,901,713 compared to EUR
1,344,442,798 in 2021. This is mainly driven by the lower trading volumes
during the year and a consequence of the transfer of business mentioned above,”
the company commented in the financial report.
As it turns
out, the negative effects of crypto winter have not stopped in 2022. The latest
reports from publicly listed cryptocurrency companies Galaxy Digital and Riot
Blockchain for Q2 2023 show a continuation of the negative trend. Both companies
reported a net loss explained by challenging market conditions.
Bitstamp Hunts for Funds and Halts Part of US
Trading
The 2022
financial report was published at a time when there is much talk about the
cryptocurrency exchange, Bitstamp. The day before yesterday (Tuesday), it
announced its plans to seek new investors, launch derivatives trading in
Europe, and expand operations in the UK and Asian markets.
Bitstamp’s
CEO, Jean-Baptiste Graftieaux, revealed that the company is seeking new funding
and a strategic sponsor to achieve these plans and rebuild its position as one
of the world’s largest cryptocurrency exchanges.
According
to data from Kaiko, Bitstamp’s US branch, which holds a BitLicense issued by
New York State, has gained some local market share in 2023. Meanwhile, other
popular platforms, such as Binance US, have become less significant, partly due
to regulatory issues and lawsuits.
However, it
turns out that regulatory problems have also ultimately affected Bitstamp.
Yesterday (Wednesday), the exchange announced the suspension of trading for
several cryptocurrencies in the US due to legislative issues. The suspension
will take effect from August 29, affecting Axie Infinity (AXS), Decentraland
(MANA), Chiliz (CHZ), Sandbox (SAND), and Solana (SOL).
Another
popular crypto exchange has joined the ranks of digital asset companies that
were significantly impacted by the industry downturn of 2022. The Bitstamp’s
financial report released this week summarizing the past year revealed a
fivefold decrease in revenues, a twofold decline in turnover, and a net loss of
over €7 million.
Bitstamp
Limited, registered in the UK, published full accounts summarizing the results
for 2022. They display substantial declines compared to the record-breaking
year of 2021, reflecting how the digital asset market’s condition changed over
these two years.
In 2021,
when a single Bitcoin (BTC) was valued at nearly $70,000, Bitstamp’s revenue
reached €109 million, with a profit of €37 million. However, in 2022, when
BTC’s price dropped to as low as $15,000 at its worst, its revenues shrank to
€29 million. Simultaneously, the net profit turned into a loss of €7 million.
Other
significant financial indicators of the cryptocurrency exchange also
depreciated. The total volume fell from €117 million to just under €55 million.
At the same time, the company incurred higher administrative costs than in
2021, amounting to €57 million.
Scan of Bitstamp’s report seen by Finance Magnates. Source: Gov.uk
As the
company admits, such significant declines in performance were caused by
“unfavorable market conditions and the reduction in trading volumes.”
The latter was due to transferring part of the business to three subsidiary
companies: Bitstamp USA, Bitstamp Global, and Bitstamp Europe. The report also
mentioned the negative impact of the war in Ukraine on conducting business in
Europe.
“The
company’s total assets decreased to EUR 358,901,713 compared to EUR
1,344,442,798 in 2021. This is mainly driven by the lower trading volumes
during the year and a consequence of the transfer of business mentioned above,”
the company commented in the financial report.
As it turns
out, the negative effects of crypto winter have not stopped in 2022. The latest
reports from publicly listed cryptocurrency companies Galaxy Digital and Riot
Blockchain for Q2 2023 show a continuation of the negative trend. Both companies
reported a net loss explained by challenging market conditions.
Bitstamp Hunts for Funds and Halts Part of US
Trading
The 2022
financial report was published at a time when there is much talk about the
cryptocurrency exchange, Bitstamp. The day before yesterday (Tuesday), it
announced its plans to seek new investors, launch derivatives trading in
Europe, and expand operations in the UK and Asian markets.
Bitstamp’s
CEO, Jean-Baptiste Graftieaux, revealed that the company is seeking new funding
and a strategic sponsor to achieve these plans and rebuild its position as one
of the world’s largest cryptocurrency exchanges.
According
to data from Kaiko, Bitstamp’s US branch, which holds a BitLicense issued by
New York State, has gained some local market share in 2023. Meanwhile, other
popular platforms, such as Binance US, have become less significant, partly due
to regulatory issues and lawsuits.
However, it
turns out that regulatory problems have also ultimately affected Bitstamp.
Yesterday (Wednesday), the exchange announced the suspension of trading for
several cryptocurrencies in the US due to legislative issues. The suspension
will take effect from August 29, affecting Axie Infinity (AXS), Decentraland
(MANA), Chiliz (CHZ), Sandbox (SAND), and Solana (SOL).
